What is operating leverage, and how does a company achieve operating leverage?
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Operating leverage exists when a company achieves a disproportionate change in profit from a small increase in sales. For example, a 5% increase in sales could result in a 25 or 50% increase in profit. A company achieves operating leverage through having fixed costs in its cost structure.
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Indicate whether the statement is true or false.
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Indicate whether the statement is true or false
The direct computer-to-computer exchange of standard business documents is known as:
a. MRP c. EDI b. e-mail d. DDS
For each of the following accounts, identify whether a debit or credit yields the indicated change
